Forex
US Slaps Sanctions on Iran Amid Global Economic Uncertainty
Despite strong APAC lead, Europe is set for a lacklustre open. European equity futures indicate a subdued cash market, while the Swedish krona (SEK) remains flat ahead of the Riksbank policy announcement.
The US President announced sweeping economic measures against Iran and threatened consequences for countries or entities supporting Tehran. He stated that 'Iran cannot have a nuclear weapon' and predicted oil prices will be lower when the situation is resolved.
US Treasury yields fell in response to the announcement, while 10-year UST futures marginally extended gains from the previous day. The FOMC Minutes revealed most participants assessed higher rates would likely be necessary if inflation did not fall.